ILP cash injection is the last it will get: Noonan

IRELAND is confident that the €1.3bn (£1.12bn) it will have to inject into Irish Life & Permanent after the collapse of the sale of its life arm will be the last capital injection required, Finance Minster Michael Noonan said yesterday.

Noonan told broadcaster RTE that the government had already set aside €1.3bn for the recapitalisation. ILP suspended the sale of its life insurance arm on Friday and blamed “very challenging market conditions”.

Canada Life, a unit of Canada’s second-largest life insurer Great-West Lifeco had been the lead candidate to buy the business, which has an embedded value of around €1.6bn, a source said last week.

Faced with a capital hole of nearly €4bn and heavily reliant on emergency funding from the European Central Bank and Ireland’s central bank, the bancassurer had put the unit, Ireland’s largest life assurer up for sale earlier this year.